They can say "Oh, if only.." all they want, but I don't think it would have succeeded even if they HAD launched. It probably would have hurt Nintendo's launch, for that matter.
See, gaming needed time to cool down and it still required Nintendo to be somewhat deceptive in order to get the NES into the market. Atari's name was still mud, and I think no matter what they tried it would have hurt the industry more than it could help them at that point.
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Try checking the MAME manual at http://docs.mamedev.org
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